Exhibit 99.1
[Logo of Entergy] For further information:
Nancy Morovich, VP, Investor Relations
Phone 504/576-5506, Fax 504/576-2897
INVESTOR NEWS nmorovi@entergy.com
July 30, 2002
ENTERGY REPORTS RECORD SECOND QUARTER
OPERATIONAL EARNINGS
NEW ORLEANS - Entergy Corporation reported solid second quarter 2002
operational earnings of $1.17 per share compared with $1.06 in the
same period of 2001, reflecting increased earnings from both utility
operations and Entergy's non-utility nuclear business. Second quarter
2002 results set a new record for the company and were 10 percent
higher than the same period one year ago. On an as reported basis,
Entergy reported income of $1.06 per share, an amount equal to
earnings for the same period in 2001. Second quarter 2002 reported
results reflected a special charge in connection with costs associated
with the restructuring of Entergy's wholesale power development
business.
"Operating results reflect the positive impact of some strengthening
of the economy in the utility's service territory and continued strong
performance in Entergy Nuclear" said J. Wayne Leonard, Entergy's chief
executive officer. "We're delivering on the commitments we have made
to our stakeholders, and we have not allowed the disruptive activities
in the sector to distract us. Four years ago we said we were going to
deliver superior financial results by focusing on our core
competencies, providing outstanding customer service, and maintaining
sound financial integrity. We've met, and in most instances exceeded,
these goals and we're committed to pursuing excellence with the
highest level of ethics and integrity in our business practices and
safety in our operations."
Table 1 provides a comparative summary of earnings per share for
second quarter and year-to-date 2002.
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Table 1: Entergy Corporation Consolidated Results
Second Quarter and Year-to-Date 2002 vs. 2001
(Per share in U.S. $)
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Second Quarter Year-to-Date
2002 2001 $ Change 2002 2001 $ Change
As Reported
U.S. Utility 0.85 0.74 0.11 1.31 1.25 0.06
Parent & Other (0.02) 0.03 (0.05) (0.05) (0.01) (0.04)
Competitive Businesses 0.23 0.29 (0.06) (0.54) 0.51 (1.05)
----------------------------------------
Consolidated Earnings 1.06 1.06 - 0.72 1.75 (1.03)
Less Special Items
U.S. Utility - - - - (0.01) 0.01
Parent & Other - - - - (0.05) 0.05
Competitive Businesses (0.11) - (0.11) (1.26) - (1.26)
----------------------------------------
Total (0.11) - (0.11) (1.26) (0.06) (1.20)
Operational
U.S. Utility 0.85 0.74 0.11 1.31 1.26 0.05
Parent & Other (0.02) 0.03 (0.05) (0.05) 0.04 (0.09)
Competitive Businesses 0.34 0.29 0.05 0.72 0.51 0.21
----------------------------------------
Consolidated Earnings 1.17 1.06 0.11 1.98 1.81 0.17
Weather Impact - - - 0.03 0.05 (0.02)
U.S. Utility
In second quarter 2002, as reported and operational utility earnings
were $0.85 per share, compared to $0.74 in second quarter 2001. The
increase in earnings quarter to quarter resulted primarily from higher
revenues due to increased sales volume reflecting both modest customer
growth and higher usage levels. Operation and maintenance expenses
were significantly higher during second quarter 2002 due primarily to
previously deferred ice storm costs being expensed as a result of the
settlement reached with the Arkansas Public Service Commission. As
noted in footnote (a) to Table 8, the net income impact of these
expenses was essentially offset by revenues recorded in accordance
with the regulatory settlement. After excluding the ice storm
settlement costs, operation and maintenance expenses were modestly
higher in 2002 compared to 2001 due primarily to spending in fossil
and nuclear generation. For the year 2002, operation and maintenance
expenses are projected to be slightly higher compared to 2001 levels.
However, improved sales and revenues driven primarily by a more
positive economic environment is expected to more than overcome this
increase.
Higher usage in second quarter 2002 increased residential sales by 7
percent, compared to second quarter 2001. Commercial and governmental
sales were up 3 percent, reflecting increased usage across all
commercial customer classes, while industrial sales experienced a 4
percent reduction quarter over quarter. The reduction in industrial
sales was due exclusively to the impact of contractual modifications
which reclassified certain industrial customers from retail to
wholesale. After removing the impact of the reclassification,
industrial sales reflected an increase of 1.5 percent resulting
primarily from increased usage in the petroleum refining sector. The
increase in usage across retail customer classes, which totaled 3.6
percent after the above reclassification, as well as the growth in the
number of customers during the quarter, demonstrate some economic
recovery beginning to take hold in the Entergy service territory. A
summary of sales volumes by customer class is included in Appendix A
to this release.
Table 2 provides a summary of the utility's key operational measures
with quarter-to-quarter and year-to-date comparisons.
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Table 2: Utility Operational Performance Measures
Second Quarter and Year-to-Date 2002 vs. 2001 (see appendix C for
definitions of measures)
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Second Quarter Year-to-Date
2002 2001 % Change 2002 2001 % Change
Utility
Generation in GWh 22,698 23,814 -5% 43,729 45,284 -3%
GWh billed
Residential 7,202 6,733 7% 14,476 14,269 1%
Commercial and Gov't 6,766 6,538 3% 12,981 12,727 2%
Industrial 10,294 10,710 -4% 19,884 21,022 -5%
Weather degree day deviation 44 94 -53% 72 3,426 -98%
from normal
Operation & maintenance $23.87 $14.33 67% $20.46 $14.58 40%
expense
Reliability
SAIFI 2.00 2.21 -10%
SAIDI 150.7 169.5 -11%
Reliability complaints 24 28 -14% 38 59 -36%
Safety 3 9 -67% 11 13 -15%
Number of customers
Residential 2,233,198 2,215,321 0.8%
Commercial & Gov't 315,675 309,289 2%
Industrial 39,455 39,538 -0.2%
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The utility continues to pursue the approval of rate plans and
mechanisms that provide increased certainty as to the allowable
earnings levels and provide incentives to reward operating excellence.
Appendix B provides a summary of the utility's pending regulatory
events and regulatory recovery mechanisms by operating subsidiary.
Parent & Other
Parent & Other recorded an as reported loss per share of $(0.02) in
second quarter 2002, compared with earnings of $0.03 in second quarter
2001. The loss in second quarter 2002 was due primarily to lower
interest income earned in 2002 resulting from lower yields on invested
cash and higher corporate expenses in the current quarter.
Competitive Businesses
As reported earnings were $0.23 per share for the competitive
businesses in second quarter 2002 compared to $0.29 in the same period
of 2001. Second quarter 2002 results include a special charge
totaling $(0.11) which reflects asset impairments and restructuring
costs in connection with the wholesale power development business.
The $(0.11) net charge also includes an offsetting gain of $0.10
primarily associated with the sale of certain assets in connection
with the restructuring process. Excluding this special charge,
operational earnings increased 17 percent, from $0.29 per share in
second quarter 2001 to $0.34 in second quarter 2002. This increase in
operational earnings reflects continued strong performance in non-
utility nuclear operations which served to more than offset lower
results from Energy Commodity Services.
Table 3 provides a 2002 vs. 2001 comparison of contributions by
business for the second quarter and year-to-date, on both an as
reported and operational bases.
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Table 3: Competitive Businesses Contributions to Earnings Per Share
Second Quarter and Year-to-Date 2002 vs. 2001
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(Per share in U.S. $)
Second Quarter Year-to-Date
2002 2001 $ 2002 2001 $
Change Change
As Reported
Entergy Nuclear 0.24 0.15 0.09 0.42 0.29 0.13
Energy Commodity Services (0.01) 0.14 (0.15) (0.96) 0.22 (1.18)
------------------------------------------
Total 0.23 0.29 (0.06) (0.54) 0.51 (1.05)
Less Special Items
Entergy Nuclear - - - - - -
Energy Commodity Services (0.11) - (0.11) (1.26) - (1.26)
------------------------------------------
Total (0.11) - (0.11) (1.26) - (1.26)
Operational
Entergy Nuclear 0.24 0.15 0.09 0.42 0.29 0.13
Energy Commodity Services 0.10 0.14 (0.04) 0.30 0.22 0.08
------------------------------------------
Total 0.34 0.29 0.05 0.72 0.51 0.21
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Table 4 provides a summary of Entergy's non-utility generation in MWh
sold forward for the years 2002 and 2003.
Table 4: Competitive Businesses Percent of Generation Sold Forward
Years 2002 and 2003 (see appendix C for definitions of measures)
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2002 2003
Entergy Nuclear
Percent of EN's total planned MWh of generation sold forward 100% 99%
Energy Commodity Services
Percent of ECS' total planned MWh of generation sold forward* 46% 20%
Percent of Competitive Businesses' planned MWh of 96% 93%
generation sold forward
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- Effective this quarter, Damhead Creek, an 800 MW gas-fired unit in
the U.K., is not included in sold forward metrics consistent with
Entergy's first quarter 2002 restructuring announcement.
Entergy Nuclear
Entergy Nuclear (EN) earned $0.24 per share compared to $0.15 in
second quarter 2001. The increase was due primarily to the
contribution in 2002 of Indian Point 2, which was acquired in
September 2001, as well as higher overall output levels due to the
absence of refueling outages in 2002. Two refueling outages were
conducted during second quarter 2001; none were conducted in second
quarter 2002. EN's average capacity factor was 98.5 percent for
second quarter 2002 as compared to 77.8 percent for the same period in
2001 reflecting the timing of plant refuelings.
EN continues to achieve excellent operational performance. EN
expanded its production capacity by 39 percent and its output by 77
percent quarter over quarter. Average production costs increased
quarter to quarter due primarily to the inclusion of amortized
refueling outage costs in 2002 for the Pilgrim and Indian Point 3
units. Currently, EN has sold 100 percent of the output of its
generating assets through the end of 2002 at prices that range from
$29 to $51 per megawatt hour.
Table 5 provides a summary of Entergy Nuclear's key operational
measures with quarter-to-quarter and year-to-date comparisons.
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Table 5: Entergy Nuclear Operational Performance Measures
Second Quarter and Year-to-Date 2002 vs. 2001 (see appendix
C for definitions of measures)
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Second Quarter Year-to-Date
2002 2001 % Change 2002 2001 % Change
Entergy Nuclear
Net MW in operation 3,445 2,475 39%
Average realized price 39.88 35.66 12%
Production cost/MWh 19.40 18.41 5% 19.51 17.89 9%
Generation in GWh 7,449 4,208 77% 14,958 9,467 58%
Capacity factor 98.5% 77.8% 27% 99.4% 88.0% 13%
Refueling outage duration Current
Period Last % Change
Outage
Pilgrim - 28 -
Indian Point 3 - 26 -
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Energy Commodity Services
Energy Commodity Services (ECS) includes the combined reporting of
Entergy-Koch L.P. and Entergy's wholesale power development business,
Entergy Wholesale Operations (EWO). ECS recorded a loss of $(0.01)
per share in second quarter 2002 compared to earnings of $0.14 in the
same period last year. This loss reflects the impact of restructuring
costs in the power development business recorded during the quarter.
Operational earnings were also lower in second quarter 2002 compared
to the same period in 2001, $0.10 per share compared to $0.14, due
primarily to lower income from the trading business. As was the case
in first quarter 2002, the income sharing mechanisms that are part of
the Entergy-Koch partnership agreement allocated substantially all of
the partnership's income to Entergy in the second quarter of this
year.
Entergy-Koch Trading, a subsidiary of Entergy-Koch L.P., contributed
lower operational earnings primarily due to low market volatility,
particularly in the power market, and lower profitability on gas
trading, compared to second quarter 2001. As of the end of second
quarter 2002, Entergy-Koch expected 31 percent of its trading book to
be converted to cash by year end 2002 and 73 percent by the end of
2003. Eighty-four percent of the fair market value of Entergy-Koch's
mark-to-market portfolio is based on actively-quoted prices. In
addition, Entergy-Koch diligently manages counterparty risks with more
than 90 percent of its trading book tied to counterparties with
investment grade credit ratings and no more than 5 percent of Entergy-
Koch's trading book is represented by a single counterparty.
The Gulf South pipeline realized higher earnings in second quarter
2002 through slightly higher volumes of gas transported and higher gas
storage revenues as movements in gas prices increased storage
activities. Volumes for second quarter 2002 were up 2 percent
compared to second quarter 2001.
EWO recorded an $(0.11) per share special item in second quarter 2002
reflecting asset impairments and restructuring costs at that business
unit. The net charge of $(0.11), detailed in Tables 8 and 9, includes
an offsetting gain of $0.10 recorded on the sale of certain assets in
connection with the restructuring process.
Table 6 provides a summary of Energy Commodity Services' key
operational measures with quarter-to-quarter and year-to-date
comparisons.
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Table 6: Energy Commodity Services Operational Performance Measures
Second Quarter and Year-to-Date 2002 vs. 2001 (see appendix C
for definitions of measures)
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Second Quarter Year-to-Date
2002 2001 % 2002 2001 %
Change Change
Entergy-Koch Trading
Electricity volatility 44% 78% -44% 45% 76% -41%
Gas volatility 53% 52% 2% 67% 71% -6%
Electricity marketed (GWh) 26,877 26,386 2% 66,705 57,395 16%
Gas marketed (Bcf/d) 4.8 6.8 -29% 5.1 7.0 -27%
Gain/loss days 1.7 4.3 -60% 1.9 2.9 -34%
Gulf South Pipeline
Throughput 2.31 2.26 2% 2.50 2.36 6%
Miles of pipeline 8,800 8,800 -
Storage capacity (Bcf) 68 68 -
Production cost $0.096 $0.095 1% $0.084 $0.093 -10%
Entergy Wholesale Operations
Net MW in operation* 1,209 3,368 -64%
Net MW under construction 597 523 14%
* Effective this quarter, Damhead Creek, an 800 MW gas-fired unit
in the U.K., is not included in sold forward metrics consistent
with Entergy's first quarter 2002 restructuring announcement.
Table 7 provides a summary of Energy Commodity Services' mark-to-
market impact with quarter-to-quarter comparisons.
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Table 7: Mark-to-Market Disclosures
Second Quarter 2002 vs. 2001 (see appendix C for definitions of measures)
- -----------------------------------------------------------------------------------
Second Quarter
2002 2001 % Change
Earnings
Mark-to-market earnings as percent of consolidated earnings 3% 15% -80%
Net Assets ($ in millions)
Mark-to-market accounting detail*
Open equity at beginning of period
Consolidated subsidiaries $35 $(25) 240%
Entergy-Koch $164 $41 300%
Open equity at end of period
Consolidated subsidiaries $(8) $(18) 56%
Entergy-Koch $132 $141 -6%
2002 2003 2004-
2005
Cash Realization ------------------
Cumulative percentage of mark-to-market realization
Consolidated subsidiaries 84% 35% 100%
Entergy-Koch 31% 73% 100%
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* Effective this quarter, Damhead Creek, an 800 MW gas-fired
unit in the U.K., is not included in Mark-to-market detail
consistent with Entergy's first quarter 2002 restructuring
announcement.
Variance Analysis
Tables 8 and 9, on the following page, provide second quarter and year-
to-date 2002 vs. 2001 reported earnings variance analyses for "U.S.
Utility, Parent & Other," "Competitive Businesses," and
"Consolidated."
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Table 8: Entergy Corporation Reported Earnings Per Share Variance Analysis
Second Quarter 2002 vs. 2001
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(Per share in U.S. $, sorted in consolidated
column, most to least favorable)
U.S. Utility, Competitive
Parent & Other Businesses Consolidated
2001 earnings 0.77 0.29 1.06
Net revenue 0.64 (a) 0.29 (b) 0.93
Interest expense and other charges 0.06 (c) 0.01 0.07
Income taxes - other (0.02) (d) 0.06 (d) 0.04
Taxes other than income taxes 0.03 (e) (0.01) 0.02
Nuclear refueling outage expense 0.01 (0.01) -
Interest and dividend income (0.02) - (0.02)
Depreciation/amortization expense (0.05) (f) (0.01) (0.06)
Asset impairments and - (0.11) (g) (0.11)
restructuring charges
Other income (deductions) 0.02 (0.16) (h) (0.14)
Other operation & maintenance (0.61) (i) (0.12) (j) (0.73)
expense
----- ----- -----
2002 earnings 0.83 0.23 1.06
----- ----- -----
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Table 9: Entergy Corporation Reported Earnings Per Share Variance Analysis
Year-to-Date 2002 vs. 2001
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(Per share in U.S. $, sorted in consolidated
column, most to least favorable) U.S. Utility, Competitive
Parent & Other Businesses Consolidated
2001 earnings 1.24 0.51 1.75
Net revenue 0.60 (a) 0.49 (b) 1.09
Interest expense and other charges 0.14 (c) 0.02 0.16
Income taxes - other 0.01 (d) 0.07 (d) 0.08
Taxes other than income taxes 0.03 (e) (0.01) 0.02
Preferred dividend requirements 0.01 - 0.01
Nuclear refueling outage expense 0.01 (0.04) (k) (0.03)
Other income (deductions) 0.03 (l) (0.08) (m) (0.05)
Depreciation/amortization expense (0.05) (f) (0.02) (0.07)
Interest and dividend income (0.09) (n) 0.01 (0.08)
Other operation & maintenance expense (0.67) (i) (0.23) (j) (0.90)
Asset impairments and restructuring charges - (1.26) (g) (1.26)
----- ----- -----
2002 earnings 1.26 (0.54) 0.72
----- ----- -----
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(a) Net revenue increased in second quarter and year-to-date 2002
due primarily to the impact of recording in current revenue
the previously deferred revenues at Entergy Arkansas per the
Transition Cost Account mechanism. The ice storm settlement
agreed to with the Arkansas Public Service Commission authorized
that the previously deferred amounts be recorded as revenue.
In addition, net revenue increased due to the impact of
higher sales volumes across retail customer segments resulting
from some strengthening in the economy. Also, fluctuations
in fuel prices positively impacted unbilled revenue which is
included in Other for the second quarter and year-to-date periods.
Utility Net Revenue Variance Analysis, 2002 vs. 2001 ($ EPS)
Second Quarter Year-to-Date
Weather - Weather (0.02)
Regulatory settlements 0.49 Regulatory settlements 0.49
Sales growth/pricing 0.07 Sales growth/pricing 0.05
Other 0.08 Other 0.08
Total 0.64 Total 0.60
(b) Net revenue increased primarily as a result of the inclusion of
operations of Indian Point 2 which was acquired in September 2001.
(c) Interest expense & other charges decreased due to the retirement
and refinancing of long-term debt and the absence of interest expense
in 2002 on System Energy Resources, Inc.'s reserve for rate refund
which was finalized in late 2001.
(d) Income statement line items are tax effected at the statutory
rate. Any difference between the statutory and effective tax rate is
reflected in the "Income taxes-other" line.
(e) Taxes other than income taxes decreased due primarily to the
elimination of Entergy Louisiana's franchise tax reserve associated
with capital leases in accordance with a recent state court finding.
(f) Depreciation expense increased primarily as a result of revisions
to certain asset lives and retirement patterns in second quarter 2001
which lowered depreciation expense, as well as higher depreciation
expense in 2002 as a result of increasing investment in property,
plant, and equipment.
(g) Asset impairments and restructuring charges reflect the impact of
recording the costs of restructuring the Entergy Wholesale Operations
business.
(h) Other income (deductions) decreased due primarily to lower Entergy-
Koch earnings.
(i) Other operation & maintenance expense increased due primarily to
Entergy Arkansas' ice storm settlement, $(0.44), prior year's reversal
of Entergy Arkansas' storm damage expenses $(0.07), and higher nuclear
and fossil operation and maintenance expenses. For the year-to-date
period, expenses increased due to lower nuclear insurance program
distributions and overall expenses were partially offset by no merger
related expenses in 2002.
(j) Other operation & maintenance expense increased due primarily to
the inclusion of operations of Indian Point 2.
(k) Nuclear refueling outage expense increased due to initiating
amortization of this cost in June 2001 for Pilgrim and Indian Point 3.
(l) Other income (deductions) increased due primarily to the
suspension of any goodwill amortization in accordance with new
accounting rules.
(m) Other income (deductions) decreased due primarily to the absence
in 2002 of liquidated damages from Damhead Creek plant and lower
equity in earnings from affiliates, primarily Entergy-Koch.
(n) Interest and dividend income decreased due to lower interest
income earned given declining deferred fuel balances at Utility as
well as lower investment balances at Parent & Other.
Table 10 lists special items by business with quarter-to-quarter and
year-to-date comparisons. Special items are those events that are not
routine, related to prior periods, or related to discontinued
operations.
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Table 10: Entergy Corporation Special Items [shown as positive /
(negative) impact on earnings]
Second Quarter and Year-to-Date 2002 vs. 2001
- -----------------------------------------------------------------------
(Per share in U.S. $) Second Quarter Year-to-Date
2002 2001 $ Change 2002 2001 $
Change
U.S. Utility Special Items
Merger expenses - - - - (0.01) 0.01
-------------------------------------------
Parent & Other Special Items
Merger expenses - - - - (0.05) 0.05
-------------------------------------------
Competitive Businesses Special Items
Energy Commodity Services -
EWO - asset impairments (0.04) - (0.04) (0.48) - (0.48)
EWO - turbine commitment 0.10 - 0.10 (0.52) - (0.52)
EWO - development costs - - - (0.09) - (0.09)
EWO - restructuring (0.17) - (0.17) (0.17) - (0.17)
-------------------------------------------
Total (0.11) - (0.11) (1.26) - (1.26)
-------------------------------------------
Total Special Items (0.11) - (0.11) (1.26) (0.06) (1.20)
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Other Performance Highlights
Entergy generated $449 million in operating cash in second quarter
2002, an increase of 8 percent compared to second quarter 2001. At
the end of second quarter 2002, Entergy had approximately $731 million
of cash and cash equivalents.
Operational net margin was 9.1 percent, its highest level in more than
six years and return on equity remained above 10 percent for the
seventh consecutive quarter.
The capital structure ratio remains within Entergy's target range with
a net debt ratio of 49 percent. Entergy's credit ratios remain among
the strongest in the industry. The current level of cash along with
significant borrowing capacity continues to provide considerable
financial flexibility to Entergy. The off-balance sheet debt,
exclusive of operating leases, totals less than $350 million and
constitutes only 2 percent of total capitalization.
As of the end of second quarter 2002, the liquidity shortfall, as
defined in appendix C was $(414) million. A significant amount of
currently maturing long-term debt, approximately $1.1 billion, created
the current liquidity shortfall at end of second quarter.
Approximately $950 million of the maturing long-term debt is
associated with utility debt that matures primarily in the first half
of 2003. Financings at the utility were structured over the past
several years to mature in the 2003-2004 timeframe as a result of the
expectation that transition to competition would be at an advanced
stage and would require significant corporate restructuring. Given
the extended delays in utility deregulation, Entergy will actively
pursue refinancing these amounts over the next 12 to 18 months and is
confident that liquidity will return to more historical levels as
refinancings are completed.
Table 11 provides a summary of financial measures with quarter-to-
quarter and year-to-date comparisons.
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Table 11: Entergy Corporation Key Financial Performance and
Flexibility Measures
Second Quarter and Year-to-Date 2002 vs. 2001 (see appendix C for
definitions of measures)
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Second Quarter Year-to-Date
For 3 months ending June 30 2002 2001 Change 2002 2001 Change
------------------------- --------------------
Operating cash flow (millions) $449 $416 $33 $803 $601 $202
Operating cash flow per share $1.96 $1.84 $0.12 $3.53 $2.67 $0.86
For 12 months ending June 30 2002 2001 Change
-------------------------
Cash return on average investment 6.20% 8.90% (2.70)%
Return on average common equity 10.28% 11.03% (0.75)%
Net margin - operational 9.12% 7.02% 2.10%
FFO interest coverage 4.39 3.84 0.55
Book value per share $34.08 $32.87 $1.21
End of period shares outstanding (millions) 224.7 221.7 3.0
As of June 30 ($ in millions) 2002 2001 Change
-------------------------
Revolver capacity $843 $896 $(53)
Total gross liquidity $1,574 $1,595 $(21)
Excess liquidity (Liquidity shortfall) $(414) $125 $(539)
Total debt $8,192 $7,974 $218
Off-balance sheet liabilities:
Project debt - $162 $(162)
Debt of joint ventures - Entergy's share $346 $312 $34
-------------------------
Leases - Entergy's share $343 $398 $(55)
Total off-balance sheet liabilities $689 $872 $(183)
Rating or other contingent liabilities $70 $63 $7
Net debt to net capital 49.1% 51.1% (2.0)%
Net debt including off-balance sheet liabilities 51.2% 53.6% (2.4)%
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Planned Capital Expenditures - 2002-2004
Entergy will continue to invest both in its core utility and wholesale
energy businesses and in growth opportunities aimed at expanding and
leveraging the advantages offered by its integrated business strategy.
Over the next three years, Entergy's utility investments will focus on
reliability improvements and customer growth. Capital investments in
Entergy's non-utility nuclear business over this same period are for
maintenance improvements, power uprates, nuclear fuel procurement, and
the purchase of the Vermont Yankee nuclear plant which will close on
July 31, 2002, in accordance with the purchase agreement. Energy
Commodity Services plans to invest in power projects currently under
construction, approximating 600 MW. Growth opportunities could
include investments in pipeline, gas storage, nuclear, as well as
additional regulated and/or unregulated generation assets.
Table 12 provides a summary of projected sources and investment of
cash for the years 2002 through 2004.
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Table 12: Entergy Corporation Projected Sources and Uses of Cash
Years 2002-2004
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(dollars in billions)
2002-2004
Sources of cash
Beginning cash at 1/1/02 0.8
Operating cash flow
Net income 2.3
Depr. & amort. 2.7
Other 0.5
Total operating cash flow 5.5
Additional debt capacity (50/50 capital structure) 1.4
----
Total cash available 7.7
Less maintenance capital expenditures 3.4
Less dividends 0.9
Less investment commitment (o) 0.6
----
Cash available for investment 2.8
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(o) Includes turbine contract cancellation costs.
Financial Outlook and Earnings Review
"Through second quarter 2002 we continued to achieve strong results
despite nearly daily negative revelations in our sector," said C. John
Wilder, Entergy's chief financial officer. "Our success is based on a
well-developed, integrated strategy supported by a solid, disciplined
financial plan. Our return metrics, credit metrics, and cash position
all continue to be very sound and our growth prospects look promising.
The first half of 2002 has been very positive and we are pleased to
confirm our 2002 operational earnings per share guidance at the $3.40
to $3.60 range."
Earnings Guidance
Entergy's 2002 earnings guidance is detailed in Table 13. Key
assumptions reflected in the earnings ranges are as follows:
- - Approximately 70 percent of 2002 earnings are expected from the
utility. Earnings guidance is based on existing rate plans and fuel
recovery mechanisms. The incremental increase expected in 2002 is the
result of modest operational improvements, the full impact of the
cessation of goodwill amortization, and the assumption of a normal
level of allocated tax benefits from Parent.
- - More than 20 percent of earnings are expected from Entergy Nuclear,
where prices are set by power purchase agreements that cover 100
percent of the megawatt hours generated. The increase in nuclear
earnings is expected to be provided by: a full-year's contribution at
Indian Point 2; the addition of Vermont Yankee, a 510 MW nuclear
acquisition that will close on July 31, 2002; and increased pricing of
power sold under the power purchase agreement at Pilgrim. Capacity
factor assumption for the overall fleet is 90 to 93 percent, and Fall
2002 refueling outages are assumed at FitzPatrick, Indian Point 2 and
Vermont Yankee.
- - Energy Commodity Services' guidance is based on a full year's
contribution from Entergy-Koch at a 50 percent sharing of income,
consistent with Entergy's ownership share. In addition, guidance
reflects adjustments for no operating losses at Saltend and no
liquidated damages from Damhead Creek. Finally, guidance reflects the
continued impact of depressed spark spreads on EWO's generation
portfolio.
- - Parent & Other's guidance is adjusted for a normal level of
allocated tax benefits, as well as reduced levels of interest income
due to lower investment balances.
Table 13 provides Entergy's projection of 2002 operational earnings
per share with 2001 operational earnings as its data starting point.
- -----------------------------------------------------------------------
Table 13: 2002 Earnings Per Share Guidance
- -----------------------------------------------------------------------
(Per share in U.S. $)
2001 2002
Operational Changes in 2002 Guidance
Range
Range of Impact
Utility including
weather Operational improvement & other 0.05 0.10
Allocation of Parent's tax benefits (0.08) (0.08)
Suspension of goodwill amortization 0.07 0.07
---------------
2.46 Total 0.04 0.09 2.50 2.55
Entergy Nuclear Indian Point 2 (full year) / Vermont 0.13 0.16
Yankee closing
Increased revenue due to Pilgrim PPA 0.05 0.06
Capacity factor normalization / outage 0.05 0.06
differences/other
---------------
0.57 Total 0.23 0.28 0.80 0.85
Energy Commodity
Services 0.38 Entergy-Koch (full year based on 50% (0.12) (0.08)
sharing)
No Saltend operating losses or 0.05 0.05
liquidated damages income on Damhead
Creek
EWO (post-restructuring) & lower (0.06) (0.05)
project income
---------------
Total (0.13) (0.08) 0.25 0.30
Parent & Other Allocation of Parent's tax benefits 0.10 0.10
Other corporate expenses (0.01) 0.03
Net interest income/(expense) (0.06) (0.05)
---------------
(0.18) Total 0.03 0.08 (0.15) (0.10)
- -----------------------------------------------------------------------------------------------------------
Total 3.23 0.17 0.37 3.40 3.60
- -----------------------------------------------------------------------------------------------------------
Entergy's 2002 operational earnings guidance with June 2002 year-to-
date actual results as its starting point is detailed in Table 14
below. This table reflects the projected earnings contributions for
each of Entergy's businesses for the remainder of 2002.
- ---------------------------------------------------------------------------
Table 14: 2002 Earnings Per Share Guidance Based on June 2002 Year-To-Date
Earnings
- ---------------------------------------------------------------------------
(Per share in US $)
June 2002 2002
YTD July-December 2002 Guidance Range
Range of Impact
Utility including Base operations (normal weather) 1.21 1.26
weather
Allocation of Parent's tax (0.06) (0.06)
benefits
Suspension of goodwill 0.04 0.04
amortization
-------------
1.31 Total 1.19 1.24 2.50 2.55
Entergy Nuclear Pilgrim, IP3, FitzPatrick, IP2 0.40 0.42
(93% non-outage capacity factor)
Vermont Yankee closing (including 0.06 0.07
outage)
IP2 and FitzPatrick refueling (0.08) (0.06)
outage impact
-------------
0.42 Total 0.38 0.43 0.80 0.85
Energy Commodity Entergy-Koch (remaining months at 0.01 0.05
Services 50% sharing,
less year to date
disproportionate sharing)
EWO (post-restructuring) & lower (0.06) (0.05)
project income
-------------
0.30 Total (0.05) - 0.25 0.30
Parent & Other Net interest income/(expense) (0.11) (0.07)
Allocation of Parent's tax 0.08 0.08
benefits
Other corporate expenses (0.07) (0.06)
-------------
(0.05) Total (0.10) (0.05) (0.15) (0.10)
- ---------------------------------------------------------------------------------------------------
Total 1.98 1.42 1.62 3.40 3.60
- ---------------------------------------------------------------------------------------------------
Entergy's 2003 earnings guidance is detailed in Table 15. Key
assumptions reflected in the earnings ranges are as follows:
- - Approximately 70 percent of 2003 earnings are expected from the
utility. Earnings guidance is based on existing rate plans and fuel
recovery mechanisms. The incremental increase expected in 2003 is the
result of modest rate base increases earning returns in the 11-12%
range with a full-year impact of rate actions in Arkansas and
Mississippi as well as some increase in overall sales growth.
- - More than 20 percent of earnings are expected from Entergy Nuclear,
where prices set by power purchase agreements will average $38/MWh.
Increases will result from the full year impact of Vermont Yankee, and
reduced overall operating costs. Capacity factor assumption for the
fleet ranges from 93 to 95 percent. Spring 2003 refueling outages are
assumed at the Pilgrim and Indian Point 3 units.
- - Energy Commodity Services' guidance is based on contributions from
Entergy-Koch at a 50 percent sharing of income, consistent with
Entergy's ownership share. Modest growth in trading, and pipeline,
along with savings from the restructured wholesale generation
business, will add to earnings at ECS.
- - Parent & Other's guidance is based on corporate expenses estimated
at approximately $30 million partially offset by interest income on
invested cash.
Table 15 provides Entergy's projection of 2003 operational earnings
per share with 2002 operational earnings guidance mid-point as its
data starting point.
- -----------------------------------------------------------------------------
Table 15: 2003 Earnings Per Share Guidance
- -----------------------------------------------------------------------------
(Per share in U.S. $)
2002
Guidence 2003 Guidance
Range Changes in 2003 Range
Range of
Impact
Utility including Rate base increase 0.05
weather
Normal sales growth 0.10
----
2.50 2.55 Total 0.15 2.65 2.70
Entergy Nuclear Increased production 0.09
including the effect of a
full year of Vermont Yankee
Lower PPA price (0.04)
Increased outage (0.08)
amortization expense
Lower production cost / 0.08
other
-----
0.80 0.85 Total 0.05 0.85 0.90
Energy Commodity Commodity trading growth 0.02
Services
Pipeline growth 0.01
Reduced overhead / EWO 0.07
restructuring
-----
0.25 0.30 Total 0.10 0.35 0.40
Parent & Other Net interest income / 0.03
(expense)
Reduced corporate expense / 0.02
Retail earnings / other
-----
(0.15) (0.10) Total 0.05 (0.10) (0.05)
- -----------------------------------------------------------------------------------------
Total 3.40 3.60 0.35 3.75 3.95
- -----------------------------------------------------------------------------------------
Entergy anticipates growing earnings at an average annual rate of 8 to
10 percent beyond 2003 and has acknowledged that such growth is
achievable only if new investments can be made over the next several
years. Entergy continues to remain confident that investment
opportunities will be available and as such believes the targeted
level of earnings growth is achievable beyond 2003.
Appendix A provides details of kwh sales and customer statistics for
the Utility.
Appendix A: Utility Electric Energy Sales & Customers
Three Months Ended June
% Weather
2002 2001 % Adjusted
(Millions of kwh)
ELECTRIC ENERGY SALES:
Residential 7,202 6,733 7.0 6.1
Commercial 6,112 5,908 3.5 2.8
Governmental 654 630 3.8 3.6
Industrial 10,294 10,710 (3.9) (3.9)
-------------------
Total to Ultimate Customers 24,262 23,981 1.2 0.8
Wholesale 2,444 2,182 12.0
-------------------
Total Sales 26,706 26,163 2.1
===================
Year to Date June
2002 2001 %
(Millions of kwh)
ELECTRIC ENERGY SALES:
Residential 14,476 14,269 1.5
Commercial 11,710 11,482 2.0
Governmental 1,271 1,245 2.1
Industrial 19,884 21,022 (5.4)
-------------------
Total to Ultimate Customers 47,341 48,018 (1.4)
Wholesale 4,658 4,631 0.6
-------------------
Total Sales 51,999 52,649 (1.2)
===================
Twelve Months Ended June
2002 2001 %
(Millions of kwh)
ELECTRIC ENERGY SALES:
Residential 31,287 32,898 (4.9)
Commercial 24,926 24,980 (0.2)
Governmental 2,620 2,627 (0.3)
Industrial 40,439 43,339 (6.7)
-------------------
Total to Ultimate Customers 99,272 103,844 (4.4)
Wholesale 8,923 9,835 (9.3)
-------------------
Total Sales 108,195 113,679 (4.8)
===================
June
2002 2001 %
ELECTRIC CUSTOMERS (YEAR TO DATE AVERAGE):
Residential 2,233,198 2,215,321 0.8
Commercial 300,763 294,675 2.1
Governmental 14,912 14,614 2.0
Industrial 39,455 39,538 (0.2)
---------------------
Total Ultimate Customers 2,588,328 2,564,148 0.9
Wholesale 38 39 (2.6)
---------------------
Total Customers 2,588,366 2,564,187 0.9
=====================
Appendix B provides a summary of the utility's pending regulatory
events and regulatory recovery mechanisms by operating subsidiary.
Appendix B: Utility Regulatory Summary Table
Second Quarter 2002
Company Allowed ROE Pending Cases/Events Fuel Recovery Mechanism
Entergy Arkansas 11.0%. ROE Settlement finalized with Annual reset based on
cap and TCA APSC in May 2002 allowing prior year's cost
mechanism for recovery of ice storm
expired on costs. Also provides for
12/31/01 no general rate case
filing prior to January
2003.
Entergy Gulf States - TX 10.95% Settlement order issued in Semi-annual reset
June 1999 froze base based on gas prices
rates. Freeze extended to and surcharge.
at least 9/15/02, current
earliest date for retail
open access.
Entergy Gulf States - LA 11.1% (in Hearings for the 8th Monthly reset with 60
place until earnings review (2001) are day lag based on
June 2003) expected to conclude in prior two months
August 2002. Also, the actual fuel and
2002 revenue review (9th) purchased power costs
and prospective revenue plus 1/12 of
study are currently unrecovered fuel
pending before commission. balance.
Procedural schedule has
not been established. In
conjunction with
commission staff, EGSI is
pursuing a formula rate
plan proposal that could
be in place in 2003.
Entergy Louisiana 9.7%-11.3% Settlement approved by Monthly reset with 60
plus ELI LPSC in July 2002 covering day lag based on
retains 40% the fifth and sixth annual prior two months
of earnings rate reviews and future actual fuel and
above top of rate regulation. Included purchased power costs
bandwidth small rate reduction and plus 1/12 of
reaffirmed ROE midpoint of unrecovered fuel
10.5%. ELI will work with balance.
the LPSC on developing a
formula rate plan and
neither party will
initiate a base rate
proceeding prior to
January 2003.
Entergy Mississippi 8.82%-11.32% Annual formula rate plan Quarterly reset based
plus EMI in place. April 2002 MPSC on forecasted costs
retains 50% order granted small rate plus fuel balance.
of earnings increase effective May
above top of 2002 and reaffirmed ROE
bandwidth midpoint as 10.07%.
Authorized ROE adjusts
each year based on filing.
Entergy New Orleans 11.4% Settlement agreement in Monthly reset with 60
1998 set current rates. day lag based on
New rate case filed in May prior two months
2002 requesting an actual fuel and
increase of $44 million. purchased power costs
Resolution not expected plus 1/12 unrecovered
prior to early 2003. fuel balance.
System Energy Resources, 10.94% FERC order on 1995 rate Actual costs billed
Inc. filing became final in as incurred.
July 2001. No new filings
currently scheduled.
Appendix C provides definitions of certain operational and financial
performance measures referenced in this release.
Appendix C: Definitions of Operational and Financial Performance Measures
Operational Measures
Utility
Generation in GWh Total number of GWh produced by all
utility generation facilities
GWh billed Total number of GWh billed to all customer
classes
Weather degree day deviation from normal The deviation from historical normal
temperatures, measured in degree days
Operation & maintenance expense Operation and maintenance and nuclear
refueling expenses per MWh generated,
excluding fuel
SAIFI System average interruption frequency
index
SAIDI System average interruption duration index
Reliability complaints Number of complaints to regulators
concerning reliability issues
Safety Number of accidents resulting in lost work
time
Number of customers Year-to-date average number of customers
Competitive Businesses
Percent of planned MWh generation sold forward Percent of planned generation output sold
forward under capacity contract, forward
physical contract or forward financial
contract, consistent with assumptions used
in earnings guidance
Entergy Nuclear
Net MW in operation Installed capacity owned or operated by
Entergy Nuclear
Average realized price As reported revenue per MWh generated for
all non-utility nuclear operations
Production cost/MWh Operation and maintenance expenses plus
fuel costs/lease charges per MWh
Generation in GWh Total number of GWh produced by all non-
utility nuclear facilities
Capacity factor The percentage of the period that the
plant generates power calculated by
dividing the output by the capacity and
normalizing the time period
Refueling outage duration Number of generation days lost for a
scheduled refueling outage
Energy Commodity Services
Entergy-Koch Trading
Electricity volatility Average volatility of into-Entergy power
prices for the period
Gas volatility Average volatility of Henry Hub spot
prices for the period
Electricity marketed (GWh) Total physical GWh volumes marketed in the
U.S. during the period
Gas marketed (Bcf/d) Physical Bcf/d volumes marketed in the
U.S. during the period
Gain/loss days Ratio of days where trading gains exceeded
trading losses in the aggregate across all
commodities
Gulf South Pipeline
Throughput Gas in Bcf/d transported by the pipeline
during the period
Miles of pipeline Total miles of transmission and gathering
pipeline in miles
Storage capacity Working gas storage capacity
Production cost Cost in $/mmbtu associated with delivering
gas, excluding cost of gas
Entergy Wholesale Operations
Net MW in operation Total MW owned and operated
Net MW under construction Total MW owned and under construction
Mark-to-Market Disclosures
Mark-to-market earnings as percent of consolidated After-tax net income of projects or
earnings businesses with mark-to-market earnings
divided by consolidated operational
earnings
Open equity Mark-to-market assets (excluding physical
gas assets) minus mark-to-market
liabilities
Cumulative percentage of mark-to-market realization Percentage of mark-to-market assets and
liabilities expected to be realized in
cash assuming held to maturity and no
change in market price
Appendix C: Definitions of Operational and Financial Performance
Measures (continued)
Cash return on average investment 12-months rolling EBITDA divided by
average investment, which is net plant
plus accumulated depreciation plus
working capital
Return on average common equity 12-months rolling operational net income
divided by average common equity
Net margin - operational 12-months rolling net income adjusted to
exclude the impact of special items
divided by 12 months rolling revenue
FFO interest coverage Funds From Operations- defined as 12-
months rolling operational net income
plus noncash items included in net income
- plus interest paid, divided by interest
expense. Reflects adjustments consistent
with rating agencies
Revolver capacity Amount of capacity remaining on corporate
and subsidiary revolvers
Total gross liquidity Sum of cash and revolver capacity
Excess liquidity Difference between total gross liquidity
and short-term debt, including repayment
of the revolver
Total debt Sum of short-term and long-term debt and
capital leases less non-recourse debt
Project debt Financing at subsidiaries to support
specific projects
Debt of joint ventures (50% share) Debt issued for Entergy-Koch L.P. and RS
Cogen joint ventures
Leases Operating leases held by subsidiaries
capitalized at implicit interest rate
Rating or other contingent Parent guarantees for which cash
liabilities collateral may be required in event of
downgrade below investment grade
Net debt to net capital Gross debt less cash and cash equivalents
divided by total capitalization less cash
and cash equivalents
Net debt including off-balance sheet Sum of gross debt and off-balance sheet
liabilities debt less cash and cash equivalents
divided by total capitalization less cash
and cash equivalents
Entergy's common stock is listed on the New York, Chicago, and Pacific
exchanges under the symbol "ETR".
Additional investor information can be accessed on-line at
www.entergy.com/earnings
Teleconference and Webcast Details
Entergy's senior management team will host an earnings conference call
at 10:00 a.m. CDST, Tuesday, July 30, 2002. The call can be accessed
by dialing 719-457-2641, the confirmation code is 532311. Please call
no more than 15 minutes prior to the scheduled start time. The call
can also be accessed via Entergy's web site at
www.entergy.com/webcasts. A replay of the teleconference will be
available through Tuesday, August 6, 2002 by dialing 719-457-0820,
confirmation code 532311. The replay will also be available on
Entergy's web site at www.entergy.com/webcasts.
**********************************************************************
The following constitutes a "Safe Harbor" statement under the Private
Securities Litigation Reform Act of 1995: Investors are cautioned
that forward-looking statements contained herein with respect to the
revenues, earnings, performance, strategies, prospects and other
aspects of the business of Entergy Corporation, Entergy Arkansas,
Inc., Entergy Gulf States, Inc., Entergy Louisiana, Inc., Entergy
Mississippi, Inc., Entergy New Orleans, Inc., and System Energy
Resources, Inc. and their affiliated companies may involve risks and
uncertainties. A number of factors could cause actual results or
outcomes to differ materially from those indicated by such forward-
looking statements. These factors include, but are not limited to,
risks and uncertainties relating to: the effects of weather, the
performance of generating units and transmission systems, the
possession of nuclear materials, fuel and purchased power prices and
availability, the effects of regulatory decisions and changes in law,
litigation, capital spending requirements, and the availability of
capital, the onset of competition, the ability to recover net
regulatory assets and other potential stranded costs, the effects of
the California electricity market on the utility industry nationally,
advances in technology, changes in accounting standards, corporate
restructuring and changes in capital structure, the success of new
business ventures, changes in the markets for electricity and other
energy-related commodities, including the use of financial and
derivative instruments and volatility of changes in market prices,
changes in the number of participants and the risk profile of such
participants in the energy marketing and trading business, changes in
interest rates and in financial and foreign currency markets
generally, the economic climate and growth in Entergy's service
territories, changes in corporate strategies, and other factors.
Entergy Corporation
Consolidating Balance Sheet
June 30, 2002
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
ASSETS
CURRENT ASSETS
Cash and cash equivalents:
Cash $ 114,723 $ 3,697 $ 26,026 $ - $ 144,446
Temporary cash investments - at cost,
which approximates market 139,072 44,275 402,529 - 585,875
Special deposits - 37 302 - 339
----------- ---------- ---------- ----------- -----------
Total cash and cash equivalents 253,795 48,009 428,857 - 730,660
----------- ---------- ---------- ----------- -----------
Other temporary investments - - - - -
Notes receivable 13 561,112 132,438 (690,319) 3,244
Accounts receivable:
Customer 342,266 326 887 - 343,479
Allowance for doubtful accounts (8,847) (2,064) (8,799) - (19,709)
Associated companies 9,082 148,491 (107,109) (50,463) -
Other 88,652 1,690 181,670 - 272,012
Accrued unbilled revenues 403,671 - 171 - 403,842
----------- ---------- ---------- ----------- -----------
Total receivables 834,824 148,443 66,820 (50,463) 999,624
Deferred fuel costs 201,651 - - - 201,651
Accumulated deferred income taxes 7,974 8 - (7,982) -
Fuel inventory - at average cost 102,554 - 2,257 18 104,829
Materials and supplies - at average cost 324,311 33 144,194 - 468,538
Deferred nuclear refueling outage costs 34,920 - 34,830 - 69,750
Prepayments and other 72,739 3,851 43,891 - 120,481
----------- ---------- ---------- ----------- -----------
TOTAL 1,832,781 761,456 853,287 (748,746) 2,698,777
----------- ---------- ---------- ----------- -----------
OTHER PROPERTY AND INVESTMENTS
Investment in affiliates - at equity 216 8,935,136 706,485 (8,935,137) 706,700
Decommissioning trust funds 848,696 - 912,791 - 1,761,487
Non-utility property - at cost (less accumulated
depreciation) 222,781 41,480 29,607 - 293,869
Other 20,291 54,417 372,695 (23,158) 424,245
----------- ---------- ---------- ----------- -----------
TOTAL 1,091,984 9,031,033 2,021,578 (8,958,295) 3,186,301
----------- ---------- ---------- ----------- -----------
PROPERTY, PLANT, AND EQUIPMENT
Electric 24,727,707 5,846 1,874,583 - 26,608,136
Property under capital lease 749,011 - - - 749,011
Natural gas 208,201 - - - 208,201
Construction work in progress 905,522 11,430 325,130 (3,570) 1,238,512
Nuclear fuel under capital lease 273,850 - - - 273,850
Nuclear fuel 24,737 - 223,022 - 247,760
----------- ---------- ---------- ----------- -----------
TOTAL PROPERTY, PLANT AND EQUIPMENT 26,889,028 17,276 2,422,735 (3,570) 29,325,470
Less - accumulated depreciation and amortization 11,960,375 4,725 157,794 - 12,122,894
----------- ---------- ---------- ----------- -----------
PROPERTY, PLANT AND EQUIPMENT - NET 14,928,653 12,551 2,264,941 (3,570) 17,202,576
----------- ---------- ---------- ----------- -----------
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
SFAS 109 regulatory asset - net 927,990 - - - 927,990
Unamortized loss on reacquired debt 160,822 - - - 160,822
Other regulatory assets 538,750 - - - 538,750
Long-term receivables 26,437 - - - 26,437
Goodwill 374,099 - 3,373 - 377,472
Other 112,097 471,357 777,005 (478,249) 882,209
----------- ---------- ---------- ----------- -----------
TOTAL 2,140,195 471,357 780,378 (478,249) 2,913,680
----------- ---------- ---------- ----------- -----------
TOTAL ASSETS $19,993,613 $10,276,397 $5,920,184 $(10,188,860) $26,001,334
=========== ========== ========== =========== ===========
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Balance Sheet
June 30, 2002
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Currently maturing long-term debt $ 990,241 $ - $ 102,322 $ - $1,092,562
Notes payable:
Associated companies - 119,834 570,406 (690,239) -
Other 40,047 705,000 304 - 745,351
Account payable:
Associated companies (10,395) 119,506 (85,160) (23,951) -
Other 478,950 3,136 102,675 - 584,762
Customer deposits 199,324 86 162 - 199,571
Taxes accrued 578,267 154,643 6,629 - 739,538
Accumulated deferred income taxes - - 19,276 (7,982) 11,294
Nuclear refueling outage costs 8,150 - - - 8,150
Interest accrued 129,479 2,197 29,329 - 161,004
Obligations under capital leases 150,016 - - - 150,016
Other 150,503 9,293 134,844 (29,262) 265,379
----------- ---------- ---------- ----------- -----------
TOTAL 2,714,582 1,113,695 880,787 (751,434) 3,957,627
----------- ---------- ---------- ----------- -----------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes 3,495,512 (30,768) (77,025) - 3,387,719
Accumulated deferred investment tax credits 459,499 - - - 459,499
Taxes accrued - 450,000 - - 450,000
Obligations under capital leases 183,437 - 15 - 183,452
Other regulatory liabilities 179,921 - - - 179,921
Decommisioning 289,467 - 928,210 - 1,217,677
Transition to competition 79,098 - - - 79,098
Regulatory reserves 50,275 - - - 50,275
Accumulated provisions 287,550 (5) 123,002 - 410,548
Other 810,443 23,954 501,545 (439,120) 896,821
----------- ---------- ---------- ----------- -----------
TOTAL 5,835,202 443,181 1,475,747 (439,120) 7,315,010
----------- ---------- ---------- ----------- -----------
Long-term debt 5,164,398 16,357 1,390,774 (72,992) 6,498,538
Preferred stock with sinking fund 24,781 - - - 24,781
Preferred stock without sinking fund 334,337 - - - 334,337
Company-obligated mandatorily redeemable
preferred securities of subsidiary trust holding
solely junior subordinated deferrable debentures 215,000 - - - 215,000
SHAREHOLDERS' EQUITY
Common stock 2,225,870 402,665 1,566,688 (4,192,741) 2,482
Authorized shares 500,000,000
Issued shares CY 248,174,087
Paid-in capital 1,784,097 5,541,593 624,503 (3,283,440) 4,666,754
Retained earnings 1,684,265 3,411,091 37,560 (1,479,075) 3,653,841
Accumulated other comprehensive income (loss) 11,081 (2,390) (27,259) 1,326 (17,241)
Less - treasury stock, at cost - 649,795 28,616 (28,616) 649,795
Shares CY 23,500,208
----------- ---------- ---------- ----------- -----------
TOTAL 5,705,313 8,703,164 2,172,876 (8,925,314) 7,656,041
----------- ---------- ---------- ----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $19,993,613 $10,276,397 $5,920,184 $(10,188,860) $26,001,334
=========== ========== ========== =========== ===========
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Balance Sheet
December 31, 2001
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
ASSETS
CURRENT ASSETS
Cash and cash equivalents:
Cash $ 94,340 $ 2,638 $ 32,888 $ - $ 129,866
Temporary cash investments - at cost,
which approximates market 360,491 25,239 232,598 - 618,327
Special deposits - 267 3,113 - 3,380
----------- ---------- ----------- ----------- -----------
Total cash and cash equivalents 454,831 28,144 268,599 - 751,573
----------- ---------- ----------- ----------- -----------
Other temporary investments 145,218 4,782 - - 150,000
Notes receivable 73 293,621 239,678 (531,235) 2,137
Accounts receivable:
Customer 294,691 108 (1) - 294,799
Allowance for doubtful accounts (8,847) (2,064) (8,345) - (19,255)
Associated companies 26,876 94,578 (77,107) (44,347) -
Other 146,143 4,240 135,339 950 286,671
Accrued unbilled revenues 268,578 - 102 - 268,680
----------- ---------- ----------- ----------- -----------
Total receivables 727,441 96,862 49,988 (43,397) 830,895
Deferred fuel costs 172,444 - - - 172,444
Accumulated deferred income taxes 27,098 8 - (20,618) 6,488
Fuel inventory - at average cost 95,863 - 1,615 18 97,497
Materials and supplies - at average cost 325,713 30 134,900 - 460,644
Deferred nuclear refueling outage costs 27,332 - 52,424 - 79,755
Prepayments and other 100,423 3,444 25,385 - 129,251
----------- ---------- ----------- ----------- -----------
TOTAL 2,076,436 426,891 772,589 (595,232) 2,680,684
----------- ---------- ----------- ----------- -----------
OTHER PROPERTY AND INVESTMENTS
Investment in affiliates - at equity 216 8,781,346 765,889 (8,781,347) 766,103
Decommissioning trust funds 854,705 - 921,245 - 1,775,950
Non-utility property - at cost (less accumulated
depreciation) 224,688 41,307 29,621 - 295,616
Other 18,946 69,693 430,060 (23,158) 495,542
----------- ---------- ----------- ----------- -----------
TOTAL 1,098,555 8,892,346 2,146,815 (8,804,505) 3,333,211
----------- ---------- ----------- ----------- -----------
PROPERTY, PLANT, AND EQUIPMENT
Electric 24,491,170 5,758 1,862,448 - 26,359,376
Property under capital lease 753,310 - - - 753,310
Natural gas 201,841 - - - 201,841
Construction work in progress 711,670 9,214 168,224 (6,278) 882,829
Nuclear fuel under capital lease 265,464 - - - 265,464
Nuclear fuel 36,611 - 195,775 - 232,387
----------- ---------- ----------- ----------- -----------
TOTAL PROPERTY, PLANT AND EQUIPMENT 26,460,066 14,972 2,226,447 (6,278) 28,695,207
Less - accumulated depreciation and amortization 11,674,308 4,167 127,103 - 11,805,578
----------- ---------- ----------- ----------- -----------
PROPERTY, PLANT AND EQUIPMENT - NET 14,785,758 10,805 2,099,344 (6,278) 16,889,629
----------- ---------- ----------- ----------- -----------
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
SFAS 109 regulatory asset - net 946,126 - - - 946,126
Unamortized loss on reacquired debt 166,546 - - - 166,546
Other regulatory assets 707,439 - - - 707,439
Long-term receivables 28,091 (8) - - 28,083
Goodwill 374,099 - 3,373 - 377,472
Other 126,644 460,927 659,060 (465,511) 781,121
----------- ---------- ----------- ----------- -----------
TOTAL 2,348,945 460,919 662,433 (465,511) 3,006,787
----------- ---------- ----------- ----------- -----------
TOTAL ASSETS $20,309,695 $9,790,961 $ 5,681,181 $(9,871,526) $25,910,311
=========== ========== =========== =========== ===========
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Balance Sheet
December 31, 2001
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Currently maturing long-term debt $ 584,438 $ - $ 98,333 $ - $ 682,771
Notes payable:
Associated companies - 229,444 302,774 (532,218) -
Other 713 350,001 304 - 351,018
Account payable:
Associated companies (3,677) 96,911 (62,040) (31,194) -
Other 508,333 6,147 78,049 - 592,529
Customer deposits 188,176 53 - - 188,230
Taxes accrued 350,178 183,270 16,685 - 550,133
Accumulated deferred income taxes - - 20,618 (20,618) -
Nuclear refueling outage costs 2,080 - - - 2,080
Interest accrued 180,276 2,239 9,905 - 192,420
Obligations under capital leases 149,352 - - - 149,352
Other 176,907 9,357 171,325 (12,203) 345,387
----------- ---------- ----------- ----------- -----------
TOTAL 2,136,777 877,422 635,953 (596,233) 3,053,920
----------- ---------- ----------- ----------- -----------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes 3,558,937 (35,485) 51,212 - 3,574,664
Accumulated deferred investment tax credits 471,090 - - - 471,090
Taxes accrued - 400,000 - - 400,000
Obligations under capital leases 181,070 - 15 - 181,085
Other regulatory liabilities 135,878 - - - 135,878
Decommisioning 285,029 - 909,304 - 1,194,333
Transition to competition 231,512 - - - 231,512
Regulatory reserves 37,591 - - - 37,591
Accumulated provisions 291,192 (4) 134,210 - 425,399
Other 852,388 44,437 397,272 (441,828) 852,269
----------- ---------- ----------- ----------- -----------
TOTAL 6,044,687 408,948 1,492,013 (441,828) 7,503,821
----------- ---------- ----------- ----------- -----------
Long-term debt 6,007,199 15,307 1,360,464 (61,942) 7,321,028
Preferred stock with sinking fund 26,185 - - - 26,185
Preferred stock without sinking fund 334,337 - - - 334,337
Company-obligated mandatorily redeemable
preferred securities of subsidiary trust holding
solely junior subordinated deferrable debentures 215,000 - - - 215,000
SHAREHOLDERS' EQUITY
Common stock 2,225,870 402,665 1,566,689 (4,192,740) 2,482
Authorized shares 500,000,000
Issued shares CY 248,174,087
Paid-in capital 1,784,097 5,528,328 578,083 (3,227,805) 4,662,704
Retained earnings 1,535,757 3,387,557 164,110 (1,448,978) 3,638,448
Accumulated other comprehensive income (loss) (214) (70,447) (87,516) 69,383 (88,794)
Less - treasury stock, at cost - 758,820 28,616 (28,616) 758,820
Shares CY 27,441,384
----------- ---------- ----------- ----------- -----------
TOTAL 5,545,510 8,489,283 2,192,750 (8,771,524) 7,456,020
----------- ---------- ----------- ----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $20,309,695 $9,790,961 $5,681,181 $(9,871,526) $25,910,311
=========== ========== =========== =========== ===========
* Totals may not foot due to rounding.
Entergy Corporation
Consolidating Balance Sheet
June 30, 2002 vs December 31, 2001
Increase/(Decrease)
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
ASSETS
CURRENT ASSETS
Cash and cash equivalents:
Cash $ 20,383 $ 1,059 $ (6,862) $ - $ 14,580
Temporary cash investments - at cost,
which approximates market (221,419) 19,036 169,931 - (32,452)
Special deposits - (230) (2,811) - (3,041)
----------- ---------- ----------- ----------- -----------
Total cash and cash equivalents (201,036) 19,865 160,258 - (20,913)
----------- ---------- ----------- ----------- -----------
Other temporary investments (145,218) (4,782) - - (150,000)
Notes receivable (60) 267,491 (107,240) (159,084) 1,107
Accounts receivable:
Customer 47,575 218 888 - 48,680
Allowance for doubtful accounts - - (454) - (454)
Associated companies (17,794) 53,913 (30,002) (6,116) -
Other (57,491) (2,550) 46,331 (950) (14,659)
Accrued unbilled revenues 135,093 - 69 - 135,162
----------- ---------- ----------- ----------- -----------
Total receivables 107,383 51,581 16,832 (7,066) 168,729
Deferred fuel costs 29,207 - - - 29,207
Accumulated deferred income taxes (19,124) - - 12,636 (6,488)
Fuel inventory - at average cost 6,691 - 642 - 7,332
Materials and supplies - at average cost (1,402) 3 9,294 - 7,894
Deferred nuclear refueling outage costs 7,588 - (17,594) - (10,005)
Prepayments and other (27,684) 407 18,506 - (8,770)
----------- ---------- ----------- ----------- -----------
TOTAL (243,655) 334,565 80,698 (153,514) 18,093
----------- ---------- ----------- ----------- -----------
OTHER PROPERTY AND INVESTMENTS
Investment in affiliates - at equity - 153,790 (59,404) (153,790) (59,403)
Decommissioning trust funds (6,009) - (8,454) - (14,463)
Non-utility property - at cost (less accumulated
depreciation) (1,907) 173 (14) - (1,748)
Other 1,345 (15,276) (57,365) - (71,297)
----------- ---------- ----------- ----------- -----------
TOTAL (6,571) 138,687 (125,237) (153,790) (146,911)
----------- ---------- ----------- ----------- -----------
PROPERTY, PLANT, AND EQUIPMENT
Electric 236,537 88 12,135 - 248,760
Property under capital lease (4,299) - - - (4,299)
Natural gas 6,360 - - - 6,360
Construction work in progress 193,852 2,216 156,906 2,708 355,683
Nuclear fuel under capital lease 8,386 - - - 8,386
Nuclear fuel (11,874) - 27,247 - 15,373
----------- ---------- ----------- ----------- -----------
TOTAL PROPERTY, PLANT AND EQUIPMENT 428,962 2,304 196,288 2,708 630,263
Less - accumulated depreciation and amortization 286,067 558 30,691 - 317,316
----------- ---------- ----------- ----------- -----------
PROPERTY, PLANT AND EQUIPMENT - NET 142,895 1,746 165,597 2,708 312,947
----------- ---------- ----------- ----------- -----------
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
SFAS 109 regulatory asset - net (18,136) - - - (18,136)
Unamortized loss on reacquired debt (5,724) - - - (5,724)
Other regulatory assets (168,689) - - - (168,689)
Long-term receivables (1,654) 8 - - (1,646)
Goodwill - - - - -
Other (14,547) 10,430 117,945 (12,738) 101,088
----------- ---------- ----------- ----------- -----------
TOTAL (208,750) 10,438 117,945 (12,738) (93,107)
----------- ---------- ----------- ----------- -----------
TOTAL ASSETS $ (316,082) $ 485,436 $ 239,003 $ (317,334) $ 91,023
=========== ========== =========== =========== ===========
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Balance Sheet
June 30, 2002 vs December 31, 2001
Increase/(Decrease)
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Currently maturing long-term debt $ 405,803 $ - $ 3,989 $ - $ 409,791
Notes payable:
Associated companies - (109,610) 267,632 (158,021) -
Other 39,334 354,999 - - 394,333
Account payable:
Associated companies (6,718) 22,595 (23,120) 7,243 -
Other (29,383) (3,011) 24,626 - (7,768)
Customer deposits 11,148 33 162 - 11,341
Taxes accrued 228,089 (28,627) (10,056) - 189,405
Accumulated deferred income taxes - - (1,342) 12,636 11,294
Nuclear refueling outage costs 6,070 - - - 6,070
Interest accrued (50,797) (42) 19,424 - (31,416)
Obligations under capital leases 664 - - - 664
Other (26,404) (64) (36,481) (17,059) (80,008)
----------- ---------- ----------- ----------- -----------
TOTAL 577,805 236,273 244,834 (155,201) 903,707
----------- ---------- ----------- ----------- -----------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes (63,425) 4,717 (128,237) - (186,945)
Accumulated deferred investment tax credits (11,591) - - - (11,591)
Taxes accrued - 50,000 - - 50,000
Obligations under capital leases 2,367 - - - 2,367
Other regulatory liabilities 44,043 - - - 44,043
Decommisioning 4,438 - 18,906 - 23,344
Transition to competition (152,414) - - - (152,414)
Regulatory reserves 12,684 - - - 12,684
Accumulated provisions (3,642) (1) (11,208) - (14,851)
Other (41,945) (20,483) 104,273 2,708 44,552
----------- ---------- ----------- ----------- -----------
TOTAL (209,485) 34,233 (16,266) 2,708 (188,811)
----------- ---------- ----------- ----------- -----------
Long-term debt (842,801) 1,050 30,310 (11,050) (822,491)
Preferred stock with sinking fund (1,404) - - - (1,404)
Preferred stock without sinking fund - - - - -
Company-obligated mandatorily redeemable
preferred securities of subsidiary trust holding
solely junior subordinated deferrable debentures - - - - -
SHAREHOLDERS' EQUITY
Common stock - - (1) (1) -
Authorized shares
Issued shares CY
Paid-in capital - 13,265 46,420 (55,635) 4,050
Retained earnings 148,508 23,534 (126,550) (30,097) 15,393
Accumulated other comprehensive income (loss) 11,295 68,057 60,257 (68,057) 71,553
Less - treasury stock, at cost - (109,025) - - (109,025)
----------- ---------- ----------- ----------- -----------
TOTAL 159,803 213,881 (19,874) (153,790) 200,020
----------- ---------- ----------- ----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ (316,082) $ 485,436 $ 239,003 $ (317,334) $ 91,023
=========== ========== =========== =========== ===========
* Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Three Months Ended June 30, 2002
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $1,687,266 $ - $ - $ (509) $ 1,686,758
Natural gas 24,982 - - - 24,982
Competitive businesses - 8,585 378,143 (1,887) 384,841
---------- --------- --------- ----------- -----------
Total 1,712,248 8,585 378,143 (2,396) 2,096,581
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased for resale 424,137 - 47,275 - 471,413
Purchased power 209,378 309 25,925 (2,093) 233,518
---------- --------- --------- ----------- -----------
Gross Margin 1,078,733 8,276 304,943 (303) 1,391,650
Margin % 63.0% 96.4% 80.6% 12.6% 66.4%
Nuclear refueling outage expenses 14,799 - 9,888 - 24,687
Provision for turbine commitments, assets
impairments and restructuring charges - - 18,169 - 18,169
Other operation and maintenance 526,958 20,580 180,042 (563) 727,017
Decommissioning 8,198 - - - 8,198
Taxes other than income taxes 73,375 694 8,125 - 82,194
---------- --------- --------- ----------- -----------
Total 1,256,845 21,583 289,424 (2,656) 1,565,196
---------- --------- --------- ----------- -----------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION 455,403 (12,998) 88,719 260 531,385
---------- --------- --------- ----------- -----------
Margin % 26.6% (151.4%) 23.5% (10.9%) 25.3%
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 188,157 1,339 16,380 - 205,876
Other regulatory charges (credits) (170,645) - - - (170,645)
---------- --------- --------- ----------- -----------
Total 17,512 1,339 16,380 - 35,231
---------- --------- --------- ----------- -----------
OPERATING INCOME (LOSS) 437,891 (14,337) 72,339 260 496,154
---------- --------- --------- ----------- -----------
Margin % 25.6% (167.0%) 19.1% (10.9%) 23.7%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during construction 8,323 - - - 8,323
Gain/(loss) on sale of assets - net 1,009 - - - 1,009
Interest and dividend income 10,833 8,662 17,194 (8,979) 27,710
Equity in earnings of unconsolidated equity affiliates - - 17,740 - 17,740
Miscellaneous - net (5,406) 8,223 (2,667) (260) (109)
---------- --------- --------- ----------- -----------
Total 14,759 16,885 32,267 (9,239) 54,673
---------- --------- --------- ----------- -----------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 104,643 - 16,749 - 121,393
Other interest - net 12,272 11,075 20,530 (8,979) 34,897
Distributions on preferred securities of subsidiaries 4,709 - - - 4,709
Allowance for borrowed funds used during construction (6,291) - - - (6,291)
---------- --------- --------- ----------- -----------
Total 115,333 11,075 37,279 (8,979) 154,708
---------- --------- --------- ----------- -----------
INCOME (LOSS) BEFORE INCOME TAXES 337,318 (8,526) 67,327 - 396,119
INCOME TAXES 136,536 (3,486) 15,484 - 148,534
---------- --------- --------- ----------- -----------
CONSOLIDATED NET INCOME (LOSS) 200,782 (5,040) 51,843 - 247,585
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER 5,932 - - - 5,932
---------- --------- --------- ----------- -----------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 194,850 $ (5,040) $ 51,843 $ - $ 241,653
========== ========= ========= =========== ===========
Margin % 11.4% (58.7%) 13.7% - 11.5%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $0.87 ($0.02) $0.23 $1.08
DILUTED $0.85 ($0.02) $0.23 $1.06
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 224,330,654
DILUTED 228,847,752
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Three Months Ended June 30, 2001
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $1,991,807 $ - $ - $ (969) $ 1,990,838
Natural gas 30,548 - - - 30,548
Competitive businesses - 8,092 477,072 (275) 484,889
-----------------------------------------------------------------
Total 2,022,355 8,092 477,072 (1,244) 2,506,275
-----------------------------------------------------------------
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas 759,634 - 265,985 - 1,025,619
purchased for resale
Purchased power 233,513 - 13,211 (829) 245,895
-----------------------------------------------------------------
Gross Margin 1,029,208 8,092 197,876 (415) 1,234,761
Margin % 50.9% 100.0% 41.5% 33.3% 49.3%
Nuclear refueling outage expenses 17,987 - 5,090 - 23,077
Provision for turbine commitments, asset
impairments and restructuring charges - - - - -
Other operation and maintenance 323,216 1,632 111,948 (686) 436,110
Decommissioning 8,903 - - - 8,903
Taxes other than income taxes 83,952 880 4,830 - 89,662
-----------------------------------------------------------------
Total 1,427,205 2,512 401,064 (1,515) 1,829,266
-----------------------------------------------------------------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION 595,150 5,580 76,008 272 677,009
-----------------------------------------------------------------
Margin % 29.4% 69.0% 15.9% (21.9%) 27.0%
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 169,425 1,068 12,879 - 183,372
Other regulatory charges (credits) 13,088 - - - 13,088
-----------------------------------------------------------------
Total 182,513 1,068 12,879 - 196,460
-----------------------------------------------------------------
OPERATING INCOME (LOSS) 412,637 4,512 63,129 272 480,549
-----------------------------------------------------------------
Margin % 20.4% 55.8% 13.2% (21.9%) 19.2%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during 6,644 - - - 6,644
construction
Gain/(loss) on sale of assets - net 760 - - - 760
Interest and dividend income 16,447 10,465 16,947 (10,264) 33,595
Equity in earnings of unconsolidated
equity affiliates - - 70,780 - 70,780
Miscellaneous - net (8,082) 6,138 2,646 (272) 432
-----------------------------------------------------------------
Total 15,769 16,603 90,373 (10,536) 112,211
-----------------------------------------------------------------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 121,327 - 9,405 - 130,732
Other interest - net 17,478 11,729 32,443 (10,264) 51,386
Distributions on preferred securities 4,709 - - - 4,709
of subsidiaries
Allowance for borrowed funds used (5,492) - - - (5,492)
during construction
-----------------------------------------------------------------
Total 138,022 11,729 41,848 (10,264) 181,335
-----------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 290,384 9,386 111,654 - 411,425
INCOME TAXES 115,228 2,239 48,376 - 165,842
-----------------------------------------------------------------
CONSOLIDATED NET INCOME (LOSS) 175,156 7,147 63,278 - 245,583
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER 6,677 - - - 6,677
-----------------------------------------------------------------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 168,479 $ 7,147 $ 63,278 $ - $238,906
=================================================================
Margin % 8.3% 88.3% 13.3% (0.0%) 9.5%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $0.76 $0.03 $0.29 $1.08
DILUTED $0.74 $0.03 $0.29 $1.06
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 221,113,598
DILUTED 225,706,421
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Three Months Ended June 30, 2002 vs. 2001
Increase/(Decrease)
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $(304,541) $ - $ - $ 460 $ (304,081)
Natural gas (5,566) - - - (5,566)
Competitive businesses - 493 (98,929) (1,612) (100,048)
--------- --------- ---------- ----------- ----------
Total (310,107) 493 (98,929) (1,153) (409,695)
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased
for resale (335,497) - (218,710) - (554,207)
Purchased power (24,135) 309 12,714 (1,264) (12,377)
--------- --------- ---------- ----------- ----------
Gross Margin 49,525 184 107,067 112 156,889
Margin % 12.1% (3.6%) 39.2% (20.7%) 17.1%
Nuclear refueling outage expenses (3,188) - 4,798 - 1,610
Provision for turbine commitments, asset
impairments and restructuring charges - - 18,169 - 18,169
Other operation and maintenance 203,742 18,948 68,094 123 290,907
Decommissioning (705) - - - (705)
Taxes other than income taxes (10,577) (186) 3,295 - (7,468)
--------- --------- ---------- ----------- ----------
Total (170,360) 19,071 (111,640) (1,141) (264,070)
--------- --------- ---------- ----------- ----------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION (139,747) (18,578) 12,711 (12) (145,624)
--------- --------- ---------- ----------- ----------
Margin % (2.8%) (220.4%) 7.5% 11.0% (1.7%)
DEPRECIATION AND AMORTIZATION: -
Depreciation and amortization 18,732 271 3,501 - 22,504
Other regulatory charges (credits) (183,733) - - - (183,733)
--------- --------- ---------- ----------- ----------
Total (165,001) 271 3,501 - (161,229)
--------- --------- ---------- ----------- ----------
OPERATING INCOME (LOSS) 25,254 (18,849) 9,210 (12) 15,604
--------- --------- ---------- ----------- ----------
Margin % 5.2% (222.8%) 5.9% 11.0% 4.5%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during construction 1,679 - - - 1,679
Gain/(loss) on sale of assets - net 249 - - - 249
Interest and dividend income (5,614) (1,803) 247 1,285 (5,885)
Equity in earnings of unconsolidated equity affiliates - - (53,040) - (53,040)
Miscellaneous - net 2,676 2,085 (5,313) 12 (540)
--------- --------- ---------- ----------- ----------
Total (1,010) 282 (58,106) 1,297 (57,537)
--------- --------- ---------- ----------- ----------
INTEREST AND OTHER CHARGES:
Interest on long-term debt (16,684) - 7,344 - (9,340)
Other interest - net (5,206) (654) (11,913) 1,285 (16,489)
Distributions on preferred securities of subsidiaries - - - - -
Allowance for borrowed funds used during construction (799) - - - (799)
--------- --------- ---------- ----------- ----------
Total (22,689) (654) (4,569) 1,285 (26,628)
--------- --------- ---------- ----------- ----------
INCOME (LOSS) BEFORE INCOME TAXES 46,933 (17,913) (44,327) - (15,305)
INCOME TAXES 21,308 (5,725) (32,892) - (17,308)
--------- --------- ---------- ----------- ----------
CONSOLIDATED NET INCOME (LOSS) 25,625 (12,188) (11,435) - 2,002
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER (745) - - - (745)
--------- --------- ---------- ----------- ----------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 26,370 $ (12,188) $ (11,435) $ - $ 2,747
========= ========= ========== =========== ==========
Margin % 3.0% (147.0%) 0.4% - 2.0%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $0.11 ($0.05) ($0.06) - -
DILUTED $0.11 ($0.05) ($0.06) - -
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Year to Date June 30, 2002
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $3,088,688 $ - $ - $ (922) $ 3,087,767
Natural gas 71,360 - - - 71,360
Competitive businesses - 17,586 782,799 (2,097) 798,288
-----------------------------------------------------------------
Total 3,160,048 17,586 782,799 (3,019) 3,957,415
-----------------------------------------------------------------
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas 820,017 - 120,257 - 940,274
purchased for resale
Purchased power 340,470 424 64,525 (2,414) 403,004
-----------------------------------------------------------------
Gross Margin 1,999,561 17,162 598,017 (605) 2,614,137
Margin % 63.3% 97.6% 76.4% 20.0% 66.1%
Nuclear refueling outage expenses 30,386 - 19,487 - 49,874
Provision for turbine commitments, asset
impairments and restructuring charges - - 419,542 - 419,542
Other operation and maintenance 864,501 36,542 351,451 (1,124) 1,251,369
Decommissioning 16,391 - - - 16,391
Taxes other than income taxes 161,374 1,270 21,921 - 184,565
-----------------------------------------------------------------
Total 2,233,139 38,236 997,183 (3,538) 3,265,019
-----------------------------------------------------------------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION 926,909 (20,650) (214,384) 519 692,396
-----------------------------------------------------------------
Margin % 29.3% (117.4%) (27.4%) (17.2%) 17.5%
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 378,044 2,813 30,142 - 410,999
Other regulatory charges (credits) (169,082) - - - (169,082)
-----------------------------------------------------------------
Total 208,962 2,813 30,142 - 241,917
-----------------------------------------------------------------
OPERATING INCOME (LOSS) 717,947 (23,463) (244,526) 519 450,479
-----------------------------------------------------------------
Margin % 22.7% (133.4%) (31.2%) (17.2%) 11.4%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during 15,004 - - - 15,004
construction
Gain/(loss) on sale of assets - net 1,672 3 - - 1,674
Interest and dividend income 15,349 15,791 35,910 (15,814) 51,237
Equity in earnings of unconsolidated
equity affiliates - - 92,804 - 92,804
Miscellaneous - net (9,928) 5,682 (6,417) (519) (11,182)
-----------------------------------------------------------------
Total 22,097 21,476 122,297 (16,333) 149,537
-----------------------------------------------------------------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 211,936 - 32,983 - 244,919
Other interest - net 19,681 16,896 39,607 (15,814) 60,371
Distributions on preferred securities 9,419 - - - 9,419
of subsidiaries
Allowance for borrowed funds used (11,930) - - - (11,930)
during construction
-----------------------------------------------------------------
Total 229,106 16,896 72,590 (15,814) 302,779
-----------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 510,938 (18,883) (194,819) - 297,237
INCOME TAXES 201,912 (7,677) (71,599) - 122,636
-----------------------------------------------------------------
CONSOLIDATED NET INCOME (LOSS) 309,026 (11,206) (123,219) - 174,601
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER 11,872 - - - 11,872
-----------------------------------------------------------------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 297,154 $ (11,206) $ (123,219) $ - $162,729
=================================================================
Margin % 9.4% (63.7%) (15.7%) - 4.1%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $1.33 ($0.05) ($0.55) $0.73
DILUTED $1.31 ($0.05) ($0.54) $0.72
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 223,143,647
DILUTED 227,588,889
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Year to Date June 30, 2001
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $3,865,130 $ - $ - $ (1,747) $ 3,863,383
Natural gas 140,931 - - - 140,931
Competitive businesses - 20,482 1,134,398 (488) 1,154,392
-----------------------------------------------------------------
Total 4,006,062 20,482 1,134,398 (2,235) 5,158,706
-----------------------------------------------------------------
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas 1,586,929 - 564,552 - 2,151,481
purchased for resale
Purchased power 459,323 - 150,833 (382) 609,774
-----------------------------------------------------------------
Gross Margin 1,959,810 20,482 419,013 (1,853) 2,397,451
Margin % 48.9% 100.0% 36.9% 82.9% 46.5%
Nuclear refueling outage expenses 35,193 - 5,090 - 40,283
Provision for turbine commitments, assets
impairments and restructuring charges - - -
Other operation and maintenance 625,053 32,024 251,913 (2,421) 906,569
Decommissioning 17,804 - - - 17,804
Taxes other than income taxes 173,931 1,465 16,729 - 192,125
-----------------------------------------------------------------
Total 2,898,233 33,489 989,117 (2,803) 3,918,036
-----------------------------------------------------------------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION 1,107,829 (13,007) 145,281 568 1,240,670
-----------------------------------------------------------------
Margin % 27.7% (63.5%) 12.8% (25.4%) 24.1%
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 359,848 2,153 24,447 - 386,448
Other regulatory charges (credits) 12,699 - - - 12,699
-----------------------------------------------------------------
Total 372,547 2,153 24,447 - 399,147
-----------------------------------------------------------------
OPERATING INCOME (LOSS) 735,282 (15,160) 120,834 568 841,523
-----------------------------------------------------------------
Margin % 18.4% (74.0%) 10.7% (25.4%) 16.3%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during 11,587 - - - 11,587
construction
Gain/(loss) on sale of assets - net 1,344 - - - 1,344
Interest and dividend income 39,304 25,387 40,338 (23,957) 81,071
Equity in earnings of unconsolidated
equity affiliates - - 95,543 - 95,543
Miscellaneous - net (16,398) 6,093 19,520 (568) 8,649
-----------------------------------------------------------------
Total 35,837 31,480 155,401 (24,525) 198,194
-----------------------------------------------------------------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 241,284 - 18,419 - 259,703
Other interest - net 33,521 21,586 68,150 (23,957) 99,300
Distributions on preferred securities 9,419 - - - 9,419
of subsidiaries
Allowance for borrowed funds used (9,431) - - - (9,431)
during construction
-----------------------------------------------------------------
Total 274,793 21,586 86,569 (23,957) 358,991
-----------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 496,326 (5,265) 189,666 - 680,726
INCOME TAXES 200,733 (3,117) 76,657 - 274,272
-----------------------------------------------------------------
CONSOLIDATED NET INCOME (LOSS) 295,593 (2,148) 113,009 - 406,454
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER 13,393 - - - 13,393
-----------------------------------------------------------------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 282,200 $ (2,148) $ 113,009 $ - $393,061
=================================================================
Margin % 7.0% (10.5%) 10.1% - 7.6%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $1.28 ($0.01) $0.51 $1.78
DILUTED $1.25 ($0.01) $0.51 $1.75
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 220,518,674
DILUTED 224,749,374
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Year to Date June 30, 2002 vs. 2001
Increase/(Decrease)
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $(776,442) $ - $ - $ 825 $ (775,617)
Natural gas (69,571) - - - (69,571)
Competitive businesses - (2,896) (351,599) (1,609) (356,104)
--------- --------- ---------- ----------- ----------
Total (846,014) (2,896) (351,599) (784) (1,201,292)
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased
for resale (766,912) - (444,295) - (1,211,207)
Purchased power (118,853) 424 (86,308) (2,032) (206,770)
--------- --------- ---------- ----------- ----------
Gross Margin 39,751 (3,320) 179,004 1,248 216,685
Margin % 14.4% (2.4%) 39.5% (62.9%) 19.6%
Nuclear refueling outage expenses (4,807) - 14,397 - 9,591
Provision for turbine commitments, asset
impairments and restructuring charges - - 419,542 - 419,542
Other operation and maintenance 239,448 4,518 99,538 1,297 344,800
Decommissioning (1,413) - - - (1,413)
Taxes other than income taxes (12,577) (195) 5,192 - (7,560)
--------- --------- ---------- ----------- ----------
Total (665,094) 4,747 8,066 (735) (653,017)
--------- --------- ---------- ----------- ----------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION (180,920) (7,643) (359,665) (49) (548,275)
--------- --------- ---------- ----------- ----------
Margin % 1.7% (53.9%) (40.2%) 8.2% (6.6%)
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 18,196 660 5,695 - 24,551
Other regulatory charges (credits) (181,781) - - - (181,781)
--------- --------- ---------- ----------- ----------
Total (163,585) 660 5,695 - (157,230)
--------- --------- ---------- ----------- ----------
OPERATING INCOME (LOSS) (17,335) (8,303) (365,360) (49) (391,045)
--------- --------- ---------- ----------- ----------
Margin % 4.4% (59.4%) (41.9%) 8.2% (4.9%)
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during construction 3,417 - - - 3,417
Gain/(loss) on sale of assets - net 328 3 - - 330
Interest and dividend income (23,955) (9,596) (4,428 8,143 (29,834)
Equity in earnings of unconsolidated equity affiliates - - (2,739) - (2,739)
Miscellaneous - net 6,470 (411) (25,937) 49 (19,831)
--------- --------- ---------- ----------- ----------
Total (13,740) (10,004) (33,104) 8,192 (48,657)
--------- --------- ---------- ----------- ----------
INTEREST AND OTHER CHARGES:
Interest on long-term debt (29,348) - 14,564 - (14,784)
Other interest - net (13,840) (4,690) (28,543) 8,143 (38,929)
Distributions on preferred securities of subsidiaries - - - - -
Allowance for borrowed funds used during construction (2,499) - - - (2,499)
--------- --------- ---------- ----------- ----------
Total (45,687) (4,690) (13,979) 8,143 (56,212)
--------- --------- ---------- ----------- ----------
INCOME (LOSS) BEFORE INCOME TAXES 14,612 (13,618) (384,485) - (383,491)
INCOME TAXES 1,179 (4,560) (148,256) - (151,636)
--------- --------- ---------- ----------- ----------
CONSOLIDATED NET INCOME (LOSS) 13,433 (9,058) (236,229) - (231,855)
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER (1,521) - - - (1,521)
--------- --------- ---------- ----------- ----------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 14,954 $ (9,058) $ (236,229) $ - $(230,334)
========= ========= ========== =========== ==========
Margin % 2.4% (53.2%) (25.7%) - (3.5%)
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $0.05 ($0.04) ($1.06) - ($1.05)
DILUTED $0.06 ($0.04) ($1.05) - ($1.03)
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Twelve Months Ended June 30, 2002
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $ 6,470,576 $ - $ - $ (1,366) $6,469,210
Natural gas 116,330 - - - 116,330
Competitive businesses - 31,709 1,806,981 (5,771) 1,832,919
----------- --------- ---------- ----------- ----------
Total 6,586,906 31,709 1,806,981 (7,137) 8,418,459
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased
for resale 2,003,006 - 467,465 - 2,470,471
Purchased power 691,594 468 128,568 (5,969) 814,661
----------- --------- ---------- ----------- ----------
Gross Margin 3,892,306 31,241 1,210,948 (1,168) 5,133,326
Margin % 59.1% 98.5% 67.0% 16.4% 61.0%
Nuclear refueling outage expenses 60,945 - 37,790 - 98,735
Provision for turbine commitments, asset
impairments and restructuring charges - - 419,542 - 419,542
Other operation and maintenance 1,644,841 90,025 764,339 (2,664) 2,496,542
Decommissioning 1,776 - - - 1,776
Taxes other than income taxes 339,643 2,393 50,254 - 392,290
----------- --------- ---------- ----------- ----------
Total 4,741,805 92,886 1,867,958 (8,633) 6,694,017
----------- --------- ---------- ----------- ----------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION 1,845,101 (61,177) (60,977) 1,496 1,724,442
----------- --------- ---------- ----------- ----------
Margin % 28.0% (192.9%) (3.4%) (21.0%) 20.5%
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 682,340 5,174 58,068 - 745,583
Other regulatory charges (credits) (202,291) - - - (202,291)
----------- --------- ---------- ----------- ----------
Total 480,049 5,174 58,068 - 543,292
----------- --------- ---------- ----------- ----------
OPERATING INCOME (LOSS) 1,365,052 (66,351) (119,045) 1,496 1,181,150
----------- --------- ---------- ----------- ----------
Margin % 20.7% (209.2%) (6.6%) (21.0%) 14.0%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during construction 29,627 - - - 29,628
Gain/(loss) on sale of assets - net 2,936 47 3,721 - 6,705
Interest and dividend income 55,747 27,638 72,795 (26,210) 129,970
Equity in earnings of unconsolidated equity affiliates - - 172,545 - 172,545
Miscellaneous - net (32,895) 4,914 (7,528) (1,496) (37,003)
----------- --------- ---------- ----------- ----------
Total 55,416 32,600 241,533 (27,706) 301,845
----------- --------- ---------- ----------- ----------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 445,675 - 84,462 - 530,136
Other interest - net 90,425 36,870 57,625 (26,210) 158,710
Distributions on preferred securities of subsidiaries 18,838 - - - 18,838
Allowance for borrowed funds used during construction (23,918) - - - (23,918)
----------- --------- ---------- ----------- ----------
Total 531,019 36,870 142,087 (26,210) 683,766
----------- --------- ---------- ----------- ----------
INCOME (LOSS) BEFORE INCOME TAXES 889,449 (70,621) (19,599) - 799,229
INCOME TAXES 301,463 (3,391) 5,984 - 304,056
----------- --------- ---------- ----------- ----------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGE 587,986 (67,230) (25,583) - 495,173
CUMULATIVE EFFECT OF ACCOUNTING CHANGE (net of taxes) - - 23,482 - 23,482
----------- --------- ---------- ----------- ----------
CONSOLIDATED NET INCOME (LOSS) 587,986 (67,230) (2,101) - 518,655
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER 22,791 - - - 22,791
----------- --------- ---------- ----------- ----------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 565,195 $(67,230) $ (2,101) $ - $495,864
=========== ========= ========== =========== ==========
Margin % 8.6% (212.0%) (0.1%) - 5.9%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $2.54 ($0.30) ($0.01) $2.23
DILUTED $2.50 ($0.30) ($0.01) $2.19
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 222,245,970
DILUTED 226,080,808
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Twelve Months Ended June 30, 2001
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $8,076,227 $ - $ - $ (10,727) $ 8,065,500
Natural gas 232,511 - - - 232,511
Competitive businesses - 20,262 2,937,396 (30,926) 2,926,732
-----------------------------------------------------------------
Total 8,308,738 20,262 2,937,396 (41,653) 11,224,743
-----------------------------------------------------------------
OPERATING EXPENSES:
Operating and Maintenance:
Fuel, fuel related expenses, and gas 2,996,988 - 838,876 (739) 3,835,126
purchased for resale
Purchased power 1,034,271 - 1,399,871 (33,551) 2,400,591
-----------------------------------------------------------------
Gross Margin 4,277,479 20,262 698,648 (7,363) 4,989,026
Margin % 51.5% 100.0% 23.8% 17.7% 44.4%
Nuclear refueling outage expenses 70,519 - 5,090 - 75,609
Provision for turbine commitments, asset
impairments and restructuring charges - - - - -
Other operation and maintenance 1,454,042 97,970 479,853 (9,117) 2,022,748
Decommissioning 40,182 - - - 40,182
Taxes other than income taxes 372,995 2,309 24,006 - 399,310
-----------------------------------------------------------------
Total 5,968,997 100,279 2,747,697 (43,407) 8,773,566
-----------------------------------------------------------------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION 2,339,741 (80,017) 189,699 1,754 2,451,177
-----------------------------------------------------------------
Margin % 28.2% (394.9%) 6.5% (4.2%) 21.8%
DEPRECIATION AND AMORTIZATION:
Depreciation and amortization 738,663 3,829 33,057 - 775,549
Other regulatory charges (credits) 51,998 - - - 51,998
-----------------------------------------------------------------
Total 790,661 3,829 33,057 - 827,547
-----------------------------------------------------------------
OPERATING INCOME (LOSS) 1,549,080 (83,846) 156,642 1,754 1,623,630
-----------------------------------------------------------------
Margin % 18.6% (413.8%) 5.3% (4.2%) 14.5%
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during 27,873 - - - 27,873
construction
Gain/(loss) on sale of assets - net 2,636 - - - 2,636
Interest and dividend income 74,879 62,368 56,997 (27,829) 166,415
Equity in earnings of unconsolidated
equity affiliates 2 - 95,543 - 95,545
Miscellaneous - net (31,543) 2,095 42,002 (1,754) 10,800
-----------------------------------------------------------------
Total 73,847 64,463 194,542 (29,583) 303,269
-----------------------------------------------------------------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 482,156 - 22,498 - 504,654
Other interest - net 59,029 31,716 78,366 (27,829) 141,283
Distributions on preferred securities 18,838 - - - 18,838
of subsidiaries
Allowance for borrowed funds used (21,567) - - - (21,567)
during construction
-----------------------------------------------------------------
Total 538,456 31,716 100,865 (27,829) 643,208
-----------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 1,084,471 (51,099) 250,319 - 1,283,691
INCOME TAXES 444,902 (23,054) 98,657 - 520,505
-----------------------------------------------------------------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGE 639,569 (28,045) 151,662 - 763,186
CUMULATIVE EFFECT OF ACCOUNTING CHANGE (net of taxes) - - - - -
-----------------------------------------------------------------
CONSOLIDATED NET INCOME (LOSS) 639,569 (28,045) 151,662 - 763,186
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER 26,883 - - - 26,883
-----------------------------------------------------------------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 612,686 $ (28,045) $ 151,662 $ - $736,303
=================================================================
Margin % 7.4% (138.4%) 5.2% - 6.6%
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC $2.78 ($0.13) $0.69 $3.34
DILUTED $2.73 ($0.13) $0.68 $3.28
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 220,696,148
DILUTED 224,508,672
*Totals may not foot due to rounding.
Entergy Corporation
Consolidating Income Statement
Twelve Months Ended June 31, 2002 vs. 2001
Increase/(Decrease)
(Dollars in thousands)
(Unaudited)
U.S. Parent & Competitive Eliminations Consolidated
Utilities Other Businesses
OPERATING REVENUES:
Domestic electric $(1,605,651) $ - $ - $ 9,361 $(1,596,290)
Natural gas (116,181) - - - (116,181)
Competitive businesses - 11,447 (1,130,415) 25,155 (1,093,813)
---------- -------- ---------- ------------ ----------
Total (1,721,832) 11,447 (1,130,415) 34,516 (2,806,284)
OPERATING EXPENSES:
Operating and Maintenance: - -
Fuel, fuel related expenses, and gas purchased
for resale (993,982) - (371,411) 739 (1,364,655)
Purchased power (342,677) 468 (1,271,303) 27,582 (1,585,930)
---------- -------- ---------- ------------ ----------
Gross Margin (385,173) 10,979 512,300 6,195 144,301
Margin % 7.6% (1.5%) 43.2% (1.3%) 16.5%
Nuclear refueling outage expenses (9,574) - 32,700 - 23,126
Provision for turbine commitments, asset
impairments and restructuring charges - - 419,542 - 419,542
Other operation and maintenance 190,799 (7,945) 284,486 6,454 473,794
Decommissioning (38,406) - - - (38,406)
Taxes other than income taxes (33,352) 84 26,248 - (7,020)
---------- -------- ---------- ------------ ----------
Total (1,227,192) (7,393) (879,739) 34,775 (2,079,549)
---------- -------- ---------- ------------ ----------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AND AMORTIZATION (494,640) 18,840 (250,676) (259) (726,735)
---------- -------- ---------- ------------ ----------
Margin % (0.1%) 202.0% (9.8%) (16.7%) (1.4%)
DEPRECIATION AND AMORTIZATION: -
Depreciation and amortization (56,323) 1,345 25,011 - (29,967)
Other regulatory charges (credits) (254,289) - - - (254,289)
---------- -------- ---------- ------------ ----------
Total (310,612) 1,345 25,011 - (284,256)
---------- -------- ---------- ------------ ----------
OPERATING INCOME (LOSS) (184,028) 17,495 (275,687) (259) (442,479)
---------- -------- ---------- ------------ ----------
Margin % 2.1% 204.6% (11.9%) (16.7%) (0.4%)
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during construction 1,754 - - - 1,755
Gain/(loss) on sale of assets - net 300 47 3,721 - 4,069
Interest and dividend income (19,132) (34,730) 15,798 1,619 (36,445)
Equity in earnings of unconsolidated equity affiliates (2) - 77,002 - 77,000
Miscellaneous - net (1,352) 2,819 (49,530) 259 (47,803)
---------- -------- ---------- ------------ ----------
Total (18,431) (31,863) 46,991 1,878 (1,424)
---------- -------- ---------- ------------ ----------
INTEREST AND OTHER CHARGES:
Interest on long-term debt (36,481) - 61,964 - 25,482
Other interest - net 31,396 5,154 (20,741) 1,619 17,427
Distributions on preferred securities of subsidiaries - - - - -
Allowance for borrowed funds used during construction (2,351) - - - (2,351)
---------- -------- ---------- ------------ ----------
Total (7,437) 5,154 41,222 1,619 40,558
---------- -------- ---------- ------------ ----------
INCOME (LOSS) BEFORE INCOME TAXES (195,022) (19,522) (269,918) 1 (484,462)
INCOME TAXES (143,439) 19,663 (92,673) - (216,449)
---------- -------- ---------- ------------ ----------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGE (51,583) (39,185) (177,245) - (268,014)
CUMULATIVE EFFECT OF ACCOUNTING CHANGE (net of taxes) - - 23,482 - 23,482
---------- -------- ---------- ------------ ----------
CONSOLIDATED NET INCOME (LOSS) (51,583) (39,185) (153,763) - (244,532)
PREFERRED DIVIDEND REQUIREMENTS OF SUBSIDIARIES
AND OTHER (4,092) - - - (4,092)
---------- -------- ---------- ------------ ----------
EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ (47,491) $ (39,185) $ (153,763) $ - $(240,440)
========== ========= ========== ============ ==========
Margin % 1.2% (73.6%) (5.3%) - (0.7%)
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC ($0.24) ($0.17) ($0.70) ($1.11)
DILUTED ($0.23) ($0.17) ($0.69) ($1.09)
*Totals may not foot due to rounding.
Entergy Corporation
Consolidated Cash Flow Statement
Year to Date June 31, 2002 vs. 2001
(Dollars in thousands)
(Unaudited)
2002 2001 Variance
OPERATING ACTIVITIES
Consolidated net income $174,601 $406,454 ($231,853)
Noncash items included in net income:
Reserve for regulatory adjustments 12,684 50,533 (37,849)
Other regulatory charges (credits) - net (169,082) 12,699 (181,781)
Depreciation, amortization, and decommissioning 427,390 404,252 23,138
Deferred income taxes and investment tax credits (171,328) (6,673) (164,655)
Allowance for equity funds used during construction (15,004) (11,587) (3,417)
(Gain) loss on sale of assets - net (1,674) (1,344) (330)
Equity in undistributed earnings of subsidiaries and unconsolidated affiliates (92,804) (95,543) 2,739
Provision for turbine commitments, asset impairments and restructuring charges 419,542 - 419,542
Changes in working capital:
Receivables (139,808) 55,382 (195,190)
Fuel inventory (7,332) (19,701) 12,369
Accounts payable (9,974) (433,769) 423,795
Taxes accrued 255,629 230,308 25,321
Interest accrued (31,416) (2,697) (28,719)
Deferred fuel 549 217,152 (216,603)
Other working capital accounts (43,475) (115,947) 72,472
Provision for estimated losses and reserves (8,576) (10,890) 2,314
Changes in other regulatory assets 186,824 (139,361) 326,185
Other 16,237 61,431 (45,194)
-------- -------- --------
Net cash flow provided by operating activities 802,983 600,699 202,284
-------- -------- --------
INVESTING ACTIVITIES
Construction/capital expenditures (736,670) (583,782) (152,888)
Allowance for equity funds used during construction 15,004 11,587 3,417
Nuclear fuel purchases (161,090) (97,126) (63,964)
Proceeds from sale/leaseback of nuclear fuel 132,472 60,632 71,840
Proceeds from sale of businesses 147,115 14,000 133,115
Investment in other nonregulated/nonutility properties (19,057) 17,515 (36,572)
Decrease (increase) in other investments 39,460 (621,801) 661 261
Changes in other temporary investments - net 150,000 - 150,000
Decommissioning trust contributions and realized change in trust assets (27,894) (38,842) 10,948
Other regulatory investments (29,755) (56,722) 29,967
Other (2,690) 52,580 (55,270)
-------- -------- --------
Net cash flow used in investing activities (493,105) (1,241,959) 748,854
-------- -------- --------
FINANCING ACTIVITIES
Proceeds from the issuance of:
Long-term debt 239,431 90,382 149,049
Common stock 112,705 59,304 53,401
Retirement of:
Long-term debt (910,908) (126,156) (784,752)
Repurchase of common stock - (7,813) 7,813
Redemption of preferred stock (1,403) (4,574) 3,171
Changes in short-term borrowings - net 394,333 95,000 299,333
Dividends paid:
Common stock (147,328) (134,760) (12,568)
Preferred stock (11,873) (11,214) (659)
-------- -------- --------
Net cash flow used in financing activities (325,043) (39,831) (285,212)
-------- -------- --------
Effect of exchange rates on cash and cash equivalents (5,748) (2,638) (3,110)
-------- -------- --------
Net increase (decrease) in cash and cash equivalents (20,913) (683,729) 662,816
Cash and cash equivalents at beginning of period 751,573 1,382,424 (630,851)
-------- ---------- ---------
Cash and cash equivalents at end of period $730,660 $ 698,695 $ 31,965
======== ========== =========